Finding 1208839 (2025-001)

Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Recovery Funds Assistance Listing Numbers: 21.027 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Compliance Requirement: Procurement Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement. The Town should have internal controls designed to ensure compliance with those provisions. Condition: The Town lacked documentation supporting compliance with federal procurement requirements. Questioned Costs: None Context: 2 of the 4 contracts tested did not contain the history of the procurement transaction to support it was in compliance with federal procurement requirements Cause: The Town did not maintain supporting documentation to support procurement compliance. Effect: Federal procurement requirements were not met. Recommendation: We recommend the Town implement controls that ensure adherence to the procurement requirements of the Uniform Guidance for expenditures being charged to federal programs.